The Parliamentary Standing Committee on Chemicals and Fertilizers has found 307 cases of drug pricing violations by pharmaceutical companies in India. These violations involved non-scheduled medicines, where the companies increased MRPs beyond the 10% annual limit set under the Drug Price Control Order (DPCO), 2013.
This discovery has raised concerns over how affordable medicines truly are in India, especially for essential and life-saving drugs.
💊 Understanding Drug Pricing in India
Drug prices in India are controlled by the National Pharmaceutical Pricing Authority (NPPA) under the DPCO, 2013, and guided by the National Pharmaceutical Pricing Policy (NPPP), 2012.
There are two main types of drugs:
- Scheduled Drugs – These are listed under Schedule-I of DPCO, including medicines from the National List of Essential Medicines (NLEM), 2022.
✅ NPPA fixes the ceiling prices for these. - Non-Scheduled Drugs – These are not on the essential list.
⚠️ Companies can set prices but cannot increase MRP by more than 10% per year.
📈 What Went Wrong?
The report found that 307 drug manufacturers violated the 10% price cap for non-scheduled medicines, directly impacting patients who depend on these medicines regularly.
Some major pharma companies like Sun Pharma, Aurobindo, Cipla, and Dr. Reddy’s were also under the scanner. However, the government clarified that it does not track the profits of pharmaceutical companies directly.
🏥 Concerns About Hospitals and Price Markups
The Committee also raised questions about an alleged nexus between pharma companies and private hospitals, where:
- Hospitals get discounted branded medicines
- Patients are forced to buy the same drugs at much higher prices
While no formal complaint has been confirmed, this possible manipulation of drug pricing creates financial pressure on patients and raises serious ethical concerns.
💸 How Much Do Patients Save Through Pricing Control?
Thanks to the NPPA’s refixation of prices for scheduled medicines under NLEM 2022, there has been an average price reduction of 16.89%, leading to estimated annual savings of ₹3,788 crore for patients.
However, since non-scheduled drugs make up around 80% of the entire drug market, better monitoring and enforcement are needed to ensure fair pricing across the board.
⚖️ What the Committee Recommends
- Stricter monitoring of drug pricing by NPPA
- Clear penalties for companies that violate pricing rules
- Greater transparency in how drug prices are set
- Stronger checks to stop price manipulation between pharma companies and hospitals
These steps are crucial to ensure affordable and accessible healthcare for all, especially those relying on essential and life-saving medicines.
📢 Why This Matters for Doctors and Patients
As healthcare providers, it’s important to be aware of how drug pricing impacts your patients. Prescribing affordable, generic options whenever possible can reduce financial burdens on families. Understanding government rules also helps you guide patients better when they raise concerns about medicine costs.
Whether you’re a doctor, hospital manager, or pharmacist, knowing the latest about drug price regulations, NPPA guidelines, and essential medicines can help you serve your patients more effectively.
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